Transportation Industry Relieved Due To Lower Fuel Prices

Falling fuel prices are all over the news broadcasts these days and for good reason. Relief from high fuel prices has helped the truck transportation industry, as well as middle class Americans, breath a huge sigh of relief. It creates a trickle-down effect as more money in pockets leads to more products being purchased. As a whole the US economy saw some growth this past year but now that fuel prices have lowered we may experience an even better economy in the future.

Fuel prices are often used as an economic gauge. When fuel and transportation cost escalate the higher cost of goods rises for the consumer. High fuel prices keep people at home more, which means less shopping or spending altogether.

Any time the price of fuel drops there is always talk of a tax rate hike by politicians. The Director of Federal Affairs for the Americans for Prosperity, Brent Gardner, was quoted saying these words. “Falling gas prices are the first significant relief many American have experienced in years. Congress should let them take advantage of it rather than treating it just as another opportunity to reach into people’s pockets and take more away in taxes. Lower-income Americans deserve a break from trying times, not be slapped with another tax that disproportionately affects them.”

 

 

Lower Fuel Price Benefits for Truck Transportation Industry

For the truck transportation industry and business owners the price of diesel is always a constant concern. Many times there is a big gap between the prices of gasoline versus diesel fuel. This higher diesel price doesn’t affect the bulk of the population, only those with diesel vehicles, certain manufacturers, and the transportation industry. It doesn’t seem fair but this gap can range at times as much as $0.88 cents per gallon!

When the price of diesel and gasoline lower it’s an exciting and lucrative time. Just a drop of $0.01 can make a huge difference in the transportation industry as a whole. Even a drop in price that small can mean an annual fuel cost savings of $350 million across the entire transportation industry.

Lower prices mean lower operating costs which in turn boosts the bottom line for everyone’s finances. However, some forms of good news can create problems in other areas. With fuel cost down there are lots more loads which increases a need for qualified drivers.  More drivers are needed and this gives more trucking companies a chance to get in on the action, as well as provide a good service to business owners that they might not ordinarily have the chance to.

Will Lower Fuel Prices Last?

No one knows for sure what the future holds as far as fuel prices go, but if we look back on the history of fuel cost, we can be certain it’s going to change again. For now we can only hope that this decrease in price will last a long time and give people a chance to regain some of their financial footing!

 

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